Federal Student Loans Forgiveness
Many students cannot manage to pay for their college tuition on their own. Fortunately students can get monetary help in the form of student loans, whether they are private or federal. A student loan functions in the same way as any other type of loan. You borrow money then pay it back later with interest. The difference between federal and private student aid options, however, can be confusing. Federal student funding comes from the U.S. Department of Education, and usually have lower interest rates and more favorable lending terms than private alternative. In addition, students who have federal student loans may qualify for a federal student loans forgiveness plan. Forgiveness offers cancelation of a part or the entirety of an individual’s outstanding federal student loan debt under certain circumstances.
There are several organizations that offer federal student loan forgiveness. These include the Peace Corps, VISTA, and AmeriCorps. Students who do volunteer work for these organizations can have some of their student loans forgiven. The amount forgiven varies from organizations to organization. Students who enlist in the Army National Guard, or are involved with other military and veteran organizations, may also receive the benefit of federal student loan forgiveness. Students can also qualify for the program if they are teachers in schools that serve low-income students or students with special needs. Other jobs or organizations that may qualify a student for loan forgiveness include: law enforcement, state government employees, federal government employees.
If you qualify for federal student loan forgiveness—meaning you meet conditions that include performing volunteer work, performing military service, practicing medicine, or teaching certain subjects in certain schools—then you can apply for federal student loan forgiveness through the U.S. Department of Education. If you need help, contact your employer or your school’s financial aid office.
The greatest benefit of federal student loan forgiveness is obvious: your federal student loans, or a portion of them, are forgiven. That means you don’t have to pay back whatever amount is cancelled.
President Obama’s student loan forgiveness initiative took a large step in helping student borrowers manage their debt after graduation. Under the president’s plan, individuals with federal student loans may have those loans forgiven after a period of 20 years, during which time they never missed the minimum monthly payment. Additionally, individuals who pursue careers in public service—such as teachers, police officers, or members of the armed forces—are eligible for federal student loan forgiveness even earlier.
What is involved in President Obama’s federal student loan forgiveness initiative?
The president’s federal student loans forgiveness program allows for the forgiveness of federal student loan debt for individuals with federal student loans who made regular monthly payments for a period of 20 years. In addition to this, President Obama’s program extends this forgiveness to those in public service. That includes teachers, police officers, or members of the armed forces.